Rupee depreciation hits CESC

Rs 800 crore cost overun in two new projects

The depreciation of rupee has hit RP-Sanjiv Goneka group flagship company CESC with a cost overrun of about Rs 800 crore in commissioning two new power projects in Chandrapur and Haldia.

"It was about five years back when the projects started and the exchange rate then was at the level of Rs 45. The depreciation of rupee has escalated the cost of equipment and all. The cost overrun for the two projects is about Rs  700 to 800 crore," CESC chairman Sanjiv Goenka said.

Sanghai Electric(SEC) China has been at the forefront of building both the plants at Chandrapur (Maharastra) and Haldia(West Bengal) with capacity of 600 MW each.

The project cost for both the plants was originally estimated at about Rs 3000 crore each. "The project cost has gone up. We are trying to account this additional cost when the power purchase agreements are being worked out for power generated from the facilities," Goenka noted.

The first unit (both the plants have two units of 300 MW each) of Chandrapur plant, which incidentally is the group's first thermal power plant outside West Bengal, has already been fully commissioned, while the second unit is at an advanced stage of commissioning.

The Haldia plant in the East Medinipur district of West Bengal, too is scheduled to be fully commissioned by the end of the year.

 

Q3 net up 5.94%

 

CESC has posted a  5.94% rise in net profit at Rs 107 crore for the quarter ended December, 2013 compared to a net profit of Rs 101  crore during the corresponding period last year.

 

Net sales during the quarter rose 16.05% to Rs 1,186 crore, against Rs 1,022 crore in the year-ago period.

 

"Given the scenario we are overall satisfied with the performance. The input cost has gone up, while the tariff has been constant, which has affected the margin to some extent,," said Sanjiv Goenka.